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EU says eurozone needs ‘permanent’ austerity

AFP [1]
October 11, 2011

The EU warned Tuesday that the eurozone requires permanent tough austerity measures if it is to cope with public debt set to crash through the 100-percent-of-GDP barrier and keep rising for many years.

With an ageing population piling up social security and pension costs, the European Commission says a radical long-term correction is required to put public debt throughout the 17-nation euro currency area on a sustainable path.

“The deterioration in the public finances of the euro area since the onset of the economic and financial crisis comes on top of already high starting levels of debt,” the Commission said in its quarterly report on the euro area.

This “at a time when the European economies are facing the prospect of the sustainability challenge of an ageing population,” it added.

Full article here [1]